In spite of the stable political condition, a 30.3% year-on-year (y-o-y) contraction in trade deficit and an improved performance in the tourism sector, Lebanon’s Balance of Payments (BoP) revealed a deficit of $432.8M in the first two months of 2015, compared to a surplus of $162.4M, in the same period last year. This might be due to the overall weakening in European and GCCs economies with falling oil prices that in turn might have affected remittances.
Up until February, Net Foreign Assets (NFA) of the Central Bank (BDL) rose by $823.9M, while that of commercial banks fell by $1.26B.
In February alone, Lebanon’s BoP also registered a deficit of $152.6M, compared to a higher deficit of $280.2M a month earlier, partly due to the narrowing trade deficit from $1.09B in January 2015 to $1.08M. NFAs of BDL grew by $466.7M while that of commercial banks declined by $619.3M, from the prior month.
Balance of Payments Up to February
Source: Banque du Liban